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As credit card issuers compete for your business, many cash-back rates have risen above 1%. Today, there are cards that offer a whopping 5% cash back in rotating categories, allowing savvy spenders to maximize their earnings.
Of course, there's a bit of a catch. In order to earn 5% cash back, you have to manually activate the offer each quarter, and there's a limit to how many points you can earn.
Ahead, CNBC Select breaks down how these cards work and how to maximize your rewards, plus we look at three of the most popular 5% cash-back cards out there so you can determine if one is right for your spending needs.
How 5% cash-back credit cards work
Each quarter, there are new bonus categories, like gas or groceries, that earn 5% cash back, up to a quarterly maximum (typically $1,500). Once you hit the cap, you earn 1% cash back on the rest of your spending.
These categories are typically pre-selected by the card issuer and released up to a year in advance via an annual cash-back calendar.
You have to activate each quarter's bonus categories in order to get the 5% cashback. This can be done online by using your card issuer's mobile app or over the phone. If you don't activate, all purchases will earn 1% cashback.
If the bonus categories are in line with your spending, it can be smart to take advantage of a 5% cash-back card. The bonus rewards you earn during those periods could outweigh what you'd get using a flat-rate card that only earns 1% to 2% cash-back year-round.
Here are some popular 5% cash-back cards and their bonus categories, to help you decide which card might be right for your lifestyle.
Find the best credit card for you by reviewing offers in our credit card marketplace or get personalized offers via CardMatch™.
Discover it 5% cash-back categories
Discover offers four different credit cards that allow cardholders to enroll every quarter to earn 5% cash back in various categories, up to a $1,500 quarterly maximum (then 1% cash back). Consumers can choose from the following cards: Discover it® Cash Back, Discover it® Student Cash Back, NHL® Discover it® and Discover it® Balance Transfer.
Here's the Discover cash-back calendar for 2025:
- January to March: Restaurants, home improvement stores (online and in-store) and select streaming services
- April to June (activate now): Grocery stores and wholesale clubs
- July to September: Announcing on June 1
- October to December: Announcing on September 1
If you maximize your spending in these categories, you could earn $75 cash back each quarter on top of the 1% cash back you earn in all the other categories. Bonus category purchases that exceed the $1,500 quarterly maximum, as well as all other purchases, earn unlimited 1% cash back.
Information about the Discover cards has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
Information about Discover cards has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.
Chase Freedom 5% cash-back categories
Cardholders who use the Chase Freedom Flex℠ earn 5% cash back on up to $1,500 across all of that quarter's categories.
Bonus categories are revealed each quarter, so there's always something new to explore. This may be a setback for consumers who like to plan out their spending, but here is what we know so far.
Here's the Chase Freedom cash-back calendar for 2025:
- January to March: Grocery stores, fitness clubs and gym memberships and hair, nails and spa services, Norwegian Cruise Lines
- April to June (activate now): Amazon purchases and select streaming services
- July to September: Announcing on June 15
- October to December: Announcing on September 15
Bonus category purchases that exceed the $1,500 quarterly maximum, as well as all other purchases, earn 1% cash back. If you maximize your spending in these categories, you could earn $75 cash back each quarter on top of the 1% cash back you earn in all the other categories.
The Chase Freedom Flex® is an excellent cash-back card for maximizing your spending in a variety of categories.
Rewards
- 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%)
- 5% cash back on travel booked through Chase Travel℠
- 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
- 1% cash back on all other purchases
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
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U.S. Bank Cash+® Visa Signature® Card 5% cash-back categories
The U.S. Bank Cash+® Visa Signature® Card is a flexible 5% cash-back card that lets you choose two categories each quarter to earn 5% cash back on up to your first $2,000 in combined eligible purchases. This is a helpful feature for consumers who want control over the bonus categories.
You can select two of these 5% cash-back categories:
- TV, internet and streaming services
- Fast food
- Cell phone providers
- Department stores
- Home utilities
- Select clothing stores
- Electronics stores
- Sporting goods stores
- Movie theaters
- Gyms/fitness centers
- Furniture stores
- Ground transportation
You also can choose one of three categories to earn an unlimited 2% cash back: grocery stores, gas stations or restaurants. Bonus categories need to be selected every quarter, even if you want to keep the same selections.
All other purchases earn a standard 1% cash back.
If you maximize your spending in your chosen 5% rewards categories, you could potentially earn $100 cash back each quarter on top of the unlimited 2% cash back you earn on either grocery store, gas station or restaurant spending, plus 1% in all the other categories.
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How to maximize your rewards
While a 5% cash-back card can be beneficial on its own, you can earn even more by pairing it with a flat-rate cash-back card.
For example, for everyday purchases, you could use the Citi Double Cash® Card, which earns an effective 2% cash back: unlimited 1% when you buy, plus an additional 1% when you pay for purchases as long as you pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel℠. You could also use a 5% cash-back card, like Discover it® Cash Back or Chase Freedom Flex℠, for bonus category purchases.
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure. Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
Is a 5% cash-back credit card right for you?
If you are looking to maximize rewards, a 5% cash-back card can be a great asset. Oftentimes they have standard interest rates and no annual fee.
However, these rotating category cards aren't for everyone. Trying to optimize your usage can be a lot of work, and many people don't want the hassle.
Further, because these cards typically have spending limits on their 5% back categories, you can often earn more in total cash-back rewards with a flat-rate cash-back credit card. With these cards, all purchases earn the same amount and you don't have to worry about rotating bonus categories, activation or quarterly caps.
For example, the Discover it® credit cards offer 5% cash back on select purchases in rotating categories upon activation, up to $1,500 in combined spending each quarter (then 1%), while Select's top pick for cash-back card, the Chase Freedom Unlimited® Card, offers an unlimited 1.5% cash back on all purchases.
Pro tip: Although billed as a cash-back card, if you have another Chase-Ultimate-Rewards-earning card like the Chase Sapphire Preferred® Card you can convert the cashback earned with a Freedom card into transferrable Ultimate Rewards points and potentially receive more value from your rewards.
Based on our calculations, Discover it® Cash Back cardholders would earn an estimated average of $696 in cash back after the first year, while Chase Freedom Unlimited users could earn $847. The savings grow the longer you use the cards: Discover it® cardholders would earn an estimated $2,088 in cash back after five years, while Chase Freedom Unlimited 2,709 users could earn up to $2,335.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
At the end of the day, the best cash-back card for you is the one that fits your spending habits and allows you to maximize desired rewards.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best cash-back credit cards.
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Information about the NHL® Discover it®, Discover it® Balance Transfer, and U.S. Bank Cash+® Visa Signature® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the cards prior to publication.
For rates and fees of the Discover it® Cash Back, click here.
For rates and fees of the Discover it® Student Cash Back, click here.
For rates and fees of the Discover it® Balance Transfer, click here.
